InvestorQ : What is the loan facility that Tata Capital offers against mutual funds?
indhumathi Sayani made post

What is the loan facility that Tata Capital offers against mutual funds?

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3 months ago
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Tata Capital has just launched an end-to-end digital loan facility against mutual fund holdings. These loans will be in the range of Rs.5 lakhs to Rs.2 crore and will be the first of its kind product. The loan will cover a range of equity and debt schemes across major funds and borrowers need to mark a lien on their holdings to get the loan. The total loan amount will be contingent on the market value of the funds, the haircut and the tenue of loan.

Being a fully digital product, it is extremely simple and convenient. It also helps customers to seamlessly avail finance without selling their units. The AUM of Indian mutual funds has more than doubled in the last 5 years and that opens up a huge opportunity. The loan can be availed as an overdraft facility or as a term loan and an auto renewal facility will also be made available. The loan will be at the discretion of Tata Capital.

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